Cadre Holdings Inc (CDRE) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to cadre Holdings Fourth Quarter and Full Year 2023 conference call. And today's call is being recorded and all lines have been placed on mute. If you would like to ask a question at the end of the prepared remarks, please press the star key then the number one on your touchtone phone. At this time, I would like to turn the conference over to Matt are goods of The IGB Group for introductions and the reading of the Safe Harbor statement. Please go ahead, sir.

下午好，歡迎參加幹部控股2023年第四季和全年電話會議。今天的通話正在錄音，所有線路均已置於靜音狀態。如果您想在準備好的演講結束時提出問題，請按星號鍵，然後按按鍵式電話上的數字 1。此時，我想將會議交給IGB Group的Matt are Goods進行介紹和安全港聲明的宣讀。請繼續，先生。

Thank you, and welcome to today's conference call to discuss cadre fourth quarter and full year results. Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements and we make these statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today. These forward-looking statements are subject to the risks and uncertainties that face cadre and industry, the markets in which we operate. More information on potential factors that could affect Cogo's financial results is included from time to time and contracts. Public reports filed with the Securities and Exchange Commission. Please note that we have posted presentation materials on our website at w. w. w. dot contract dash holdings.com, which supplement our comments this evening and include a reconciliation of certain non-GAAP financial measures. I'd like to remind everyone that this call will be available for replay through March 19th, 2024, starting at 8 P.M. Eastern time tonight. A webcast replay will also be available via the link provided in today's press release as well as on Padres website.

謝謝，歡迎參加今天的電話會議，討論幹部第四季和全年業績。在開始之前，我想提醒大家，在今天的電話會議中，我們將做出幾項前瞻性聲明，並且我們是根據 1995 年《私人證券訴訟改革法案》的安全港條款做出這些聲明的。這些前瞻性陳述反映了我們基於對當今已知資訊的理解的最佳估計和假設。這些前瞻性陳述受到幹部和產業以及我們經營所在市場所面臨的風險和不確定性的影響。有關可能影響 Cogo 財務表現的潛在因素的更多資​​訊不時包含在合約中。向美國證券交易委員會提交的公開報告。請注意，我們已在我們的網站 w 上發布了演示材料。 w。 w。 .com 合約 dash Holdings.com，補充了我們今晚的評論，並包括對某些非 GAAP 財務指標的調整。我想提醒大家，本次電話會議可在 2024 年 3 月 19 日晚上 8 點開始前重播。東部時間今晚。也可以透過今天新聞稿中以及教士網站上提供的連結進行網路廣播重播。

At this time, I'd like to turn the call over to Coventry's Chairman and CEO, Warren Kanders.

現在，我想將電話轉給考文垂董事長兼執行長 Warren Kanders。

Good afternoon, and thank you for joining Cogo's earnings call to discuss our results for the fourth quarter and full year 2023. I am joined today by our President, Brad Williams, and Chief Financial Officer, Blaine Broward, finishing up the fourth quarter and closing the year strong in 2023 I continue to be very proud of the focus and execution of our management team has demonstrated in achieving record results for annual revenue, adjusted EBITDA, gross margin and adjusted EBITDA margin our management team's consistent implementation of the cadre operating model continues to drive this strong performance. The results, in my opinion are impressive, and we are exceptionally proud of them. Revenues were up 5.4%. Gross profit increased 14.2%. Adjusted EBITDA increased 13.3%, and our adjusted EBITDA margin grew from 16.5% in 2022 to 17.8% in 2023.

下午好，感謝您參加 Cogo 的財報電話會議，討論我們第四季和 2023 年全年的業績。今天，我們的總裁布拉德威廉斯(Brad Williams) 和首席財務官布萊恩布勞沃德(Blaine Broward) 與我一起完成了第四季度的工作，並在2023 年為這一年畫上了圓滿的句點。年收入、調整後 EBITDA、毛利率和調整後 EBITDA 利潤率均創歷史新高，我們的管理團隊始終如一地實施幹部營運模式，繼續推動這一強勁業績。在我看來，結果令人印象深刻，我們為此感到非常自豪。營收成長 5.4%。毛利成長14.2%。調整後 EBITDA 成長 13.3%，調整後 EBITDA 利潤率從 2022 年的 16.5% 成長至 2023 年的 17.8%。

We have spoken often about the high free cash flow characteristics of our company and those we look at for M&A and 2023 bears that out with net cash from operating activities growing from $46.4 million in 2022 to $73.2 million in 2023, an increase of 57.8%. We, as a team are pleased that we have been able to deliver for our shareholders and we hope to continue doing so I have commented on prior calls about the macros driving our business and those remain largely the same today. Looking at the US, it tends to be true that public safety becomes top of mind during presidential election years. It is also worth highlighting the crime rates, while down somewhat over the last year or so, remain relatively high compared to where they were pre pandemic internationally, geopolitical conditions continue to be tense and crime rates and internal friction. We're also higher in many countries in which we operate. Having said that, the ongoing conflicts in Ukraine and the Middle East have still not impacted our businesses in any material way. We do expect as these events eventually come down, there may be an opportunity for cadre to play a larger role through a number of our products, mostly notably through our EOD. offerings.

我們經常談到我們公司的高自由現金流特徵，以及我們所關注的併購和2023 年的特徵，經營活動產生的淨現金從2022 年的4640 萬美元增長到2023 年的7320 萬美元，增長了57.8 %。作為一個團隊，我們很高興我們能夠為股東提供服務，我們希望繼續這樣做，我已經對先前有關推動我們業務的宏觀因素的呼籲發表了評論，而這些宏觀因素今天基本上保持不變。看看美國，在總統選舉年，公共安全往往成為首要考慮因素。另外值得強調的是，犯罪率雖然比去年左右有所下降，但與國際疫情前相比仍然相對較高，地緣政治局勢仍然緊張，犯罪率和內部摩擦仍然存在。在我們開展業務的許多國家，我們的業績也更高。話雖如此，烏克蘭和中東地區持續不斷的衝突仍未對我們的業務產生任何實質影響。我們確實預計，隨著這些事件最終平息，幹部可能有機會透過我們的許多產品（尤其是透過我們的 EOD）發揮更大的作用。供品。

Lastly, I'd like to talk about our M&A program. As I am had particularly happy about the recent progress we have made in that effort. We were in a prolonged period characterized by cheap debt financing that contributed to transaction valuations that seemed out of whack following that as interest rates started to go up, we had a period where business owners of all kinds were hesitant to accept that M&A conditions were changing. Now we seem to be settling into a more normal environment where interest rates are high relative to recent history, but only slightly elevated compared to a longer-term look back, this is important for contract because this debt environment causes valuations to moderate and more importantly, gives cadre an advantage in pursuing targets.

最後我想談談我們的併購計劃。我對我們最近在這方面取得的進展感到特別高興。我們處於一個以廉價債務融資為特徵的漫長時期，導致交易估值似乎不正常，隨著利率開始上升，我們經歷了一段時期，各類企業主都不願接受併購條件正在改變。現在我們似乎正在適應一個更正常的環境，利率相對於近期歷史較高，但與長期回顧相比僅略有上升，這對合約很重要，因為這種債務環境導致估值溫和，更重要的是，使幹部在追求目標時具有優勢。

Given the strength of our balance sheet and our ability to act quickly, we close the iCore transaction in January, which was the Letter of Intent I referred to on our last call. In the case of Alpha's safety from the time we went exclusive with the seller and still signing. We were able to complete documentation in roughly four weeks based upon the support of our bank group to provide incremental borrowings and the substantial cash position we had built up over time in each of these cases, being patient and disciplined about our M&A approach paid off and were able to buy in quick succession to margin accretive businesses with solid growth prospects.

鑑於我們的資產負債表實力和快速行動的能力，我們在一月份完成了 iCore 交易，這就是我在上次電話會議中提到的意向書。就阿爾法的安全而言，從我們與賣家達成獨家協議並仍在簽約時起。基於我們銀行集團提供增量借款的支持以及我們在每個案例中隨著時間的推移建立的大量現金頭寸，我們能夠在大約四個星期內完成文件記錄，對我們的併購方法保持耐心和紀律，並且得到了回報能夠快速連續購買具有穩健成長前景的利潤增值企業。

A few more words, in particular about Alpha's safety, the safety, I wanted to highlight our long-term strategy. We have said since our IPO and all along that we would eventually pursue acquisitions of safety-related, highly engineered Technical Products, businesses that diversify our Company and give us additional growth avenues. Alpha's safety is just that. So acquisitions substantially increases our TAM in a market with outstanding macro tailwinds, we believe we can build into a sizable platform on par with some of our bigger product areas like duty gear, armor or EOD. equipment. We are actively looking at a number of tuck-ins for Alpha, but it's also worth noting we will continue to look at further diversification plays that are consistent with our strategy and the M&A criteria we have consistently communicated.

再說幾句話，特別是關於 Alpha 的安全性，安全性，我想強調我們的長期策略。自首次公開募股以來，我們一直表示，我們最終將尋求收購安全相關、高度工程化的技術產品，這些業務將使我們公司多元化，並為我們提供額外的成長途徑。Alpha 的安全僅此而已。因此，在具有出色宏觀順風的市場中，收購大大提高了我們的 TAM，我們相信我們可以打造一個與我們一些更大的產品領域（如執勤裝備、裝甲或 EOD）相當的大型平台。裝置.我們正在積極考慮阿爾法的一些投資，但值得注意的是，我們將繼續考慮符合我們的策略和我們一直傳達的併購標準的進一步多元化投資。

In conclusion, I am proud of our results for this quarter and the full year. We are happy to be able to provide our initial earnings guidance for 2024, which includes the impact of our recent acquisitions.

總之，我對本季和全年的業績感到自豪。我們很高興能夠提供 2024 年的初步獲利指引，其中包括我們最近收購的影響。

Looking ahead, we are optimistic about our prospects for 2024, and we expect we will be able to make additional traction on our M&A program this calendar year.

展望未來，我們對 2024 年的前景感到樂觀，預計今年我們將能夠進一步推動我們的併購計畫。

With that, thank you for being with us today, and I will turn the call over to Brad. Brad, over to you.

在此，感謝您今天與我們在一起，我會將電話轉給布萊德。布拉德，交給你了。

Thank you, Warren. On today's call, Blaine and I will provide a Q4 update and business overview, including recent trends, M&A developments and financial performance, followed by a Q&A session will begin on slide 6. Strong and recurring demand for our best-in-class mission critical safety products, combined with progress implementing our operating model, continue to drive our financial performance during the fourth quarter, our full year revenue of $482.5 million and adjusted EBITDA of $85.8 million. Both exceeded our guidance ranges our Q4 product mix was less favorable than previous quarters due to lower EOD. volume. As expected, our gross margins were 39.9%, an improvement of 70 basis points year over year. We maintained a strong orders backlog, which was $126.7 million as of December 31st and $8.8 million increase since the start of the year. Importantly, we've also delivered on strategic objectives related to M&A. As Warren mentioned, in January, we acquired iCore technology, a trusted global supplier of high quality, reliable, innovative and cost-effective EOD robots. And this week, we announced the completion of our acquisition of Alpha's safety, a leading nuclear safety solutions company. We're incredibly excited to integrate these businesses, both of which support mission critical initiatives with highly visible recurring revenue and compelling growth opportunities with insurance customers. Blaine will speak more on these transactions later on the call. It's important to highlight that with our low CapEx model, we continue to generate strong free cash flow, enabling cadre to take advantage of these attractive growth opportunities and explore additional M&A at the same time, we paid nine consecutive quarterly dividends since going public. We are committed to returning capital to shareholders and recently raised our dividend to $0.35 per share on an annualized basis, a 9% increase.

謝謝你，沃倫。在今天的電話會議上，Blaine 和我將提供第 4 季的最新情況和業務概述，包括近期趨勢、併購進度和財務業績，隨後將在幻燈片 6 上開始問答環節。對我們一流的關鍵任務安全產品的強勁和持續需求，加上我們營運模式的實施進展，繼續推動我們第四季度的財務業績，全年收入達 4.825 億美元，調整後 EBITDA 達 8580 萬美元。兩者都超出了我們的指導範圍，由於 EOD 較低，我們第四季度的產品組合不如前幾季有利。體積。如預期，我們的毛利率為 39.9%，年增 70 個基點。我們維持強勁的積壓訂單，截至 12 月 31 日為 1.267 億美元，自年初以來增加了 880 萬美元。重要的是，我們也實現了與併購相關的策略目標。正如 Warren 所提到的，我們在一月份收購了 iCore technology，這是一家值得信賴的全球供應商，提供高品質、可靠、創新且具有成本效益的排爆機器人。本週，我們宣布完成對領先核安解決方案公司 Alpha's safety 的收購。我們非常高興能夠整合這些業務，這兩項業務都支援關鍵任務計劃，具有高度可見的經常性收入和保險客戶的引人注目的成長機會。布萊恩將在稍後的電話會議上更多地談論這些交易。需要強調的是，憑藉我們的低資本支出模式，我們繼續產生強勁的自由現金流，使幹部能夠利用這些有吸引力的增長機會並探索更多併購，同時，我們自上市以來連續九個季度派發股息。我們致力於向股東返還資本，最近將年化股息提高至每股 0.35 美元，增幅為 9%。

Turning to slide 7, I'd like to reiterate that the macro tailwinds supporting country's long-term sustainable growth remain intact. Country's life-saving mission is more critical than ever as publicly public safety initiatives continue to be prioritized in both the US and abroad. Cadre is ideally positioned to capitalize on these secular tailwinds over the medium and long term.

轉向投影片 7，我想重申，支持國家長期可持續成長的宏觀有利因素仍然完好無損。隨著美國和國外公共安全措施繼續被優先考慮，國家的拯救生命使命比以往任何時候都更重要。幹部處於理想的位置，可以在中長期利用這些長期順風。

On Slide 8, you'll see the latest market trends affecting our business. I'll briefly discuss a few and their impacts on Calgary. We have not seen any changes in geopolitical conditions that create a more immediate opportunity for us to contribute safety products and equipment.

在投影片 8 上，您將看到影響我們業務的最新市場趨勢。我將簡要討論其中的一些及其對卡加利的影響。我們還沒有看到地緣政治條件有任何變化，為我們貢獻安全產品和設備創造了更直接的機會。

As we have mentioned previously, we still expect as ongoing conflicts eventually abate.

正如我們之前提到的，我們仍然期望持續的衝突最終會減少。

Cadre could play a larger role likely through our various VOD offerings.

幹部可以透過我們的各種隨選視訊服務發揮更大的作用。

Turning to our supply chain, we've continued to see improvements and today, the majority of our supply chain is stable. Before moving to M&A, I'd like to briefly discuss consumer trends and new product introductions. Country's commitment to innovation is a key differentiator and allows us to maintain our premium position in our core markets. On the consumer side, we saw 24% growth in beauty care sales in Q4 year over year, driven by our focus on new products in this space. We continue to hear highly positive feedback on our NCOGX. Holster, which we launched in partnership with daily strategic in January. At the SHOT Show, we introduced Apex ground-based braking, considerable body armor Vest System that redefines the standards of agility and comfort for those who dedicate their lives to safeguarding others, inspired by the evolution of sports performance and designed to meet the dynamic demands of law enforcement. Apex is not just a carrier. It's a paradigm shift in personal safety at the core of APEX like revolutionary for peace carrier design that seamlessly integrates two site panels with front and rear counterparts. This unique configuration allows for unparalleled articulation, ensuring the armor moves fluidly with the body offering coverage during every twist and turn of duty. We're very early in the launch of Apex, but the feedback has been overwhelming. Our Armour team is focused on spending time, training our channel partners and fielding many inquiries as we work to get the product in the hands of our customers.

談到我們的供應鏈，我們不斷看到改進，今天，我們的大部分供應鏈都很穩定。在討論併購之前，我想先簡單討論一下消費趨勢和新產品介紹。國家對創新的承諾是一個關鍵的差異化因素，使我們能夠在核心市場中保持領先地位。在消費者方面，由於我們專注於該領域的新產品，第四季度美容護理銷售額年增 24%。我們繼續聽到有關 NCOGX 的高度正面的回饋。Holster，我們在一月與 Daily Strategy 合作推出。在SHOT Show 上，我們推出了Apex 地面煞車、強大的防彈背心系統，該系統為致力於保護他人的人重新定義了敏捷性和舒適性的標準，其靈感來自運動性能的演變，旨在滿足動態需求的執法。Apex 不僅僅是一個載體。這是 APEX 核心人身安全的範式轉變，就像和平航母設計的革命性變革一樣，將兩個站點面板與前後面板無縫整合。這種獨特的配置可實現無與倫比的鉸接，確保裝甲與身體一起流暢移動，在每次扭轉和轉彎時提供覆蓋。我們正處於推出 Apex 的早期階段，但回饋非常熱烈。我們的 Armor 團隊專注於花時間、培訓我們的通路夥伴並處理許多詢問，同時努力將產品交到客戶手中。

I'll now turn the call over to our CFO Blaine Browers.

我現在將把電話轉給我們的財務長 Blaine Browers。

Thanks, Brad. I'll kick off my comments with a review of our M&A strategy and two recent acquisitions as investors familiar with cadre, now that we're committed to a patient and disciplined approach to M&A and use our very selective criteria as we evaluate our funnel. Our targets are niche businesses with high cost of substitution, high margins, leading market positions and recurring revenue profiles, review potential transactions within three categories. Those that will expand our suite of core safety products, those that will grow our geographic footprint and those that will enable us to enter new adjacent verticals.

謝謝，布拉德。作為熟悉幹部的投資者，我將首先回顧我們的併購策略和最近的兩次收購，現在我們致力於採取耐心和嚴格的併購方法，並在評估我們的管道時使用我們非常挑剔的標準。我們的目標是具有高替代成本、高利潤、領先市場地位和經常性收入狀況的利基企業，審查三個類別內的潛在交易。那些將擴展我們的核心安全產品套件的產品，那些將擴大我們的地理足跡的產品，以及那些將使我們能夠進入新的相鄰垂直領域的產品。

Our acquisition of Alpha safety, which I'll cover on slides 11 to 14 falls into the third category. We've long signaled our intention to diversify contracts platform by targeting leading manufacturers of mission critical safety products in attractive verticals, acquiring Alpha's safety both accomplish this strategic objective and is consistent with the established M&A M&A criteria we prioritize with its leading niche market position, high cost of substitution, strong brand recognition and resiliency through market cycles. It's an ideal cadre of business.

我們對 Alpha safety 的收購（我將在投影片 11 至 14 中介紹）屬於第三類。我們長期以來一直表示，我們打算透過在有吸引力的垂直領域瞄準關鍵任務安全產品的領先製造商來實現合約平台多元化，收購Alpha 的安全既可以實現這一戰略目標，又符合我們以其領先的利基市場地位優先考慮的既定併購標準，高替代成本、強大的品牌認知度和市場週期的彈性。這是一個理想的企業幹部。

Also, I'd like to underscore that Alpha safety has defensible recurring revenue and highly visible growth prospects. Its partnership with key customers are approaching 40 years with high margin revenues tied to contracts and committed purchase orders. 2023 revenues were $44 million and EBITDA margins exceeded 20%. Alpha's safety suite of highly engineered technical products and services focused on radiation protection are outlined in Slide 12. These include engineered containers, ventilation and contamination, field services and maintenance, advanced transportation containers, specialty filters and radiometric instrumentation, their diversified portfolio of products for a portfolio of products and services, span the nuclear value chain and are best understood by highlighting the three key nuclear missions. They serve first and the largest by revenue is environmental safety. Approximately 50% of Alpha's 2023 revenues relate to this mission and Alpha provides advanced engineered containers, ventilation containment solutions and analysis services for the cleanup initiatives that relate to decades of U.S. nuclear, material processing and handling. These include Department of Energy, mission critical and mandated cleanup efforts spanning numerous sites from decades of nuclear weapons development and government-sponsored Nuclear Energy Research.

另外，我想強調的是，阿爾法安全擁有可靠的經常性收入和高度可見的成長前景。它與主要客戶的合作關係已接近 40 年，高利潤收入與合約和承諾的採購訂單相關。 2023 年營收為 4,400 萬美元，EBITDA 利潤率超過 20%。投影片 12 概述了 Alpha 高度工程化的技術產品和服務的安全套件，重點是輻射防護。其中包括工程容器、通風和污染、現場服務和維護、先進的運輸容器、特殊過濾器和輻射測量儀器，其產品和服務組合的多元化產品組合跨越了核價值鏈，透過強調三個關鍵核任務。他們首先服務的也是收入最大的服務是環境安全。Alpha 2023 年收入的約 50% 與此任務相關，Alpha 為與美國數十年核、材料加工和處理相關的清理計劃提供先進的工程容器、通風遏制解決方案和分析服務。其中包括能源部、數十年核武開發和政府資助的核能研究中跨越眾多地點的關鍵任務和強制清理工作。

Second is natural national security missions, which reflect ongoing and expanding national defense initiatives for Alpha's safety. This involves advanced engineered container solutions and specialty filters as the U.S. ramps at the plutonium pit production.

其次是自然國家安全任務，這反映了為了阿爾法安全而持續和擴大的國防措施。隨著美國鈽礦坑產量的增加，這涉及先進的工程容器解決方案和特殊過濾器。

Third, related to nuclear energy. This key mission includes the decommissioning and decontamination of legacy nuclear power plants alpha provides and engineered container solutions and ventilation containment systems. Increasing global demand for sustainable energy sources will drive demand for both legacy and new nuclear power. As a reminder, Alpha does not transport themselves or taking the custody nuclear material.

第三，與核能有關。這項關鍵任務包括阿爾法提供的遺留核電廠的退役和淨化以及工程貨櫃解決方案和通風安全殼系統。全球對永續能源的需求不斷增長將推動對傳統核電和新型核電的需求。提醒一下，阿爾法不會自行運輸或保管核子材料。

Turning to slide 13, you'll see that this acquisition immediately expands countries total addressable market combined with cadre that serviceable addressable market in our core categories. This now represents an opportunity of up to $8 billion based on complex and evolving industry needs and macro tailwinds. Nuclear Safety presents an opportunity for consistent organic growth and upside through additional M&A. Specifically, we're excited about the platform that exists to pursue add-ons that realize synergies, enhance capabilities and expand the customer base.

翻到投影片 13，您會發現此次收購立即擴大了國家的總潛在市場以及我們核心類別中可服務的潛在市場。基於複雜且不斷變化的行業需求和宏觀有利因素，這代表著高達 80 億美元的機會。核安全提供了透過額外併購實現持續有機成長和上行的機會。具體來說，我們對這個平台感到興奮，該平台旨在追求實現協同效應、增強功能和擴大客戶群的附加元件。

In summary, we're very pleased to acquire Alto safety look forward to executing on our growth plans has a leading market position across all its key product lines and a large total addressable market with long-term industry tailwinds.

總而言之，我們非常高興收購 Alto safety，期待執行我們的成長計劃，該公司在所有關鍵產品線中都處於領先的市場地位，並且擁有龐大的總體潛在市場，具有長期的行業優勢。

Financial profile strong highlighted by a highly visible and predictable revenue, supported by long term contracts and recurring purchase orders, protected products and limited competition drive EBITDA margins greater than 20% for alpha.

高度可見且可預測的收入、長期合約和經常性採購訂單、受保護的產品和有限的競爭的支持，突出了阿爾法的財務狀況，使 EBITDA 利潤率超過 20%。

Next, let me take a moment to discuss our accretive acquisition of iCore Technology announced in December. As you'll see on the right side of slide 15, this was another transaction that checked many of the boxes. We look for an acquisition target. Icore is a trusted global supplier of EOD robots with a leading market position, strong strong brand recognition, compelling macroeconomic trends, resiliency through cycles, recurring revenues and high margins. The business in its most recent fiscal year ended during the summer achieved approximately $19 million of revenues with EBITDA margins in excess of [20%] headquartered in Ottawa, Ontario, iCore strategically located near the national headquarters of the Canadian Department of National Defense and the Royal Canadian Mounted Police and is also in close proximity to cadre EOD business message, which is also based in Ottawa. The addition of iCore meaningfully expands our ability to provide mission critical EOD robots to law enforcement agencies and military organizations, which is an area that we are intimately familiar, we expect to be able to take advantage of cadre scale and extensive sales channels to further penetrate Icoria key markets regarding both acquisitions of Icoria and Alpha safety, where in the initial phases of integration, our top priorities include working with teams relate to finance accounting, IT, legal and compliance. We look forward to implementing core cadre operating tools in the coming months.

接下來，讓我花點時間討論一下我們在 12 月宣布的 iCore Technology 的增值收購。正如您將在幻燈片 15 的右側看到的那樣，這是另一筆勾選了許多方框的交易。我們尋找收購目標。Icore 是值得信賴的全球排爆機器人供應商，擁有領先的市場地位、強大的品牌知名度、引人注目的宏觀經濟趨勢、週期彈性、經常性收入和高利潤。該業務在夏季結束的最近一個財年實現了約 1,900 萬美元的收入，EBITDA 利潤率超過 [20%]，iCore 總部位於安大略省渥太華，地理位置優越，靠近加拿大國防部國家總部和加拿大皇家騎警也靠近幹部排爆業務資訊中心，其總部也位於渥太華。iCore的加入有意義地擴展了我們向執法機構和軍事組織提供關鍵任務排爆機器人的能力，這是我們非常熟悉的領域，我們期望能夠利用幹部規模和廣泛的銷售渠道進一步滲透Icoria 是收購Icoria 和Alpha safety 的關鍵市場，在整合的初始階段，我們的首要任務包括與財務會計、IT、法律和合規相關的團隊合作。我們期待在未來幾個月內實施核心幹部操作工具。

In terms of our M&A expectations for the remainder of the year, we continue to be pleased with the uptick in activity in M&A markets, and we are working diligently through our funnel to find other businesses that fit well within our criteria.

就我們對今年剩餘時間的併購預期而言，我們對併購市場活動的增加繼續感到滿意，並且我們正在努力透過我們的管道尋找其他符合我們標準的企業。

Turning now to a summary of progress financial performance. Slide 1718 detail detail our Q4 results. As you can see on slide 17, fourth quarter net income of $9.6 million or $0.25 per share increased 45% as compared to last year's Q4. For the full year, revenue, adjusted EBITDA gross margin and adjusted EBITDA margin were all the highest since inception as we continue to roll out our operating model and manage the positioning of our portfolio of premium products.

現在轉向財務業績進展摘要。投影片 1718 詳細介紹了我們第四季的業績。正如您在幻燈片 17 中看到的，第四季度淨利潤為 960 萬美元，即每股 0.25 美元，比去年第四季度增長了 45%。全年營收、調整後 EBITDA 毛利率和調整後 EBITDA 利潤率均創下自成立以來的最高水平，因為我們繼續推出我們的營運模式並管理我們優質產品組合的定位。

We've made significant progress driving margin expansion, illustrated on slide 18 as net sales and adjusted EBITDA growth year over year, including our 2024 guidance, which I'll discuss in more in a moment at its midpoint, this outlook implies full year revenue and adjusted EBITDA growth of 16.5% and 23.5% respectively. This follows a year in which we increased revenue, about 6% and adjusted EBITDA, 13%.

我們在推動利潤率擴張方面取得了重大進展，如幻燈片18 所示，淨銷售額和調整後EBITDA 逐年增長，包括我們的2024 年指導，我將在中點進一步討論，這一前景意味著全年收入調整後 EBITDA 成長分別為 16.5% 和 23.5%。今年我們的營收成長了約 6%，調整後的 EBITDA 成長了 13%。

On slide 19, we present our capital structure as of December 31st. While the M&A market was quiet for the last 12 to 18 months, cadre continued to accumulate cash on the balance sheet, allowing us to close these two transactions in Q1 and still have what we believe to be a responsible pro forma net leverage ratio of around [two times]. This includes both acquisitions adjusted EBITDA contributions. Based on our last 12 months, we provide new 2024 guidance.

在投影片 19 上，我們展示了截至 12 月 31 日的資本結構。雖然過去 12 至 18 個月併購市場平靜，但幹部繼續在資產負債表上累積現金，使我們能夠在第一季完成這兩筆交易，並且仍然擁有我們認為負責任的預計淨槓桿率約為[兩次]。這包括兩項收購調整後的 EBITDA 貢獻。根據過去 12 個月的情況，我們提供了新的 2024 年指引。

On slide 20, we expect net sales to be between $553 million and $572 million. Our adjusted EBITDA guidance range of between $104 million and $108 million dollars implies adjusted EBITDA margins of 18.8%. This will be a continuation of our strong margin performance and substantially beat our record 2023 adjusted EBITDA margins of 17.8% right now, we expect quarterly revenue splits to be similar to 2023 with Q2 and Q3 being our strongest revenue quarters. But please keep in mind, this can be impacted by our customers and their demand timing.

在投影片 20 上，我們預計淨銷售額將在 5.53 億美元至 5.72 億美元之間。我們調整後的 EBITDA 指引範圍為 1.04 億美元至 1.08 億美元，這意味著調整後的 EBITDA 利潤率為 18.8%。這將是我們強勁利潤率表現的延續，並大幅超過我們目前創紀錄的2023 年調整後EBITDA 利潤率17.8%，我們預計季度收入分配將與2023 年類似，其中第二季度和第三季度是我們營收最強勁的季度。但請記住，這可能會受到我們的客戶及其需求時間的影響。

Outside transaction expenses, we expect SG&A to be fairly level through the year. We do expect a stronger margin and revenue in Q1 compared to Q4 as our mix normalizes. But please note, this excludes any impact from inventory step-up related to acquisitions, which will create some headwind on margins and net income.

除交易費用外，我們預計全年銷售、管理及行政費用將維持在相當水準。隨著我們的組合正常化，我們確實預計第一季的利潤率和收入將比第四季更高。但請注意，這不包括與收購相關的庫存增加的任何影響，這將對利潤率和淨利潤造成一些不利影響。

I'll now turn it back to Brad for concluding comments.

現在我將把它轉回布拉德以徵求結論意見。

Thank you, Blaine. We are highly pleased with our strategic execution in 2023, which is reflected in our strong fourth quarter and full year financial results. Our teams have done an outstanding job, and these stellar results are a testament to their hard work and commitment to cadre life-saving mission.

謝謝你，布萊恩。我們對 2023 年的策略執行感到非常滿意，這反映在我們強勁的第四季度和全年財務業績中。我們的團隊做得非常出色，這些出色的成績證明了他們的辛勤工作和對幹部救生使命的承諾。

Looking forward, the recent M&A that we've executed to acquire iCore and Alpha safety sets up 2024 to be another record year. Based on the ongoing implementation of our operating model. We are confident that the team's relentless focus on constant improvement and Optimize results will drive margin expansion and increased profitability as we continue to grow our business, supported by robust acquisition pipeline as well as macro tailwinds related to increasing public safety budgets and favorable industry dynamics. We believe cadre is ideally positioned to continue to expand our platform and further enhance our market leadership over the long term.

展望未來，我們最近執行的收購 iCore 和 Alpha safety 的併購將使 2024 年再創紀錄。基於我們營運模式的持續實施。我們相信，在強勁的收購管道以及與公共安全預算增加和有利的行業動態相關的宏觀順風的支持下，隨著我們業務的不斷發展，團隊對持續改進和優化結果的不懈關注將推動利潤率擴張和獲利能力的提高。我們相信，從長遠來看，幹部處於繼續擴大我們的平台並進一步增強我們的市場領導地位的理想位置。

With that, Operator, please now open up the lines for Q&A.

那麼，操作員，現在請打開問答線。

At this time, I would like to remind everyone in order to ask a question, please press star one. Your first question comes from Jeff Van Sinderen with B. Riley. Please go ahead.

此時，我想提醒大家，想提問，請按星號一。你的第一個問題來自 Jeff Van Sinderen 和 B. Riley。請繼續。

Good afternoon, everyone. And let me just say congratulations on the strong reported metrics and on your recent acquisitions I realize it's early, but I'm just wondering your thoughts on the new APEX thus product. Is it possible that could drive some sort of an upgrade or replacement cycle?

大家下午好。讓我對強勁的報告指標和您最近的收購表示祝賀，我意識到現在還為時過早，但我只是想知道您對新的 APEX 產品的想法。這是否有可能推動某種升級或更換週期？

Yes, great. Great question, Jeff, and thanks for the comments. In terms of replacement cycles since going public, we've had quite a few new products that we've launched to the market. We've talked about new products tripping potentially those replacement cycles. And today, whether it's been body armor or posters or other products, we have not seen even products with strong value propositions in that premium position typically are tripping on one of our customers from that current cycle that we're in. So we'll see. But at this point, we don't expect that trend to change. But the innovation has definitely been accepted as we continue to take it out to customers.

對，很好。很好的問題，傑夫，感謝您的評論。從上市以來的更新換代週期來看，我們已經推出了不少新產品。我們已經討論過新產品可能會打破這些更換週期。如今，無論是防彈衣、海報或其他產品，我們還沒有看到，即使是具有強大價值主張、處於高端地位的產品通常也會被我們目前所處週期的客戶絆倒。所以我們拭目以待。但目前，我們預期這種趨勢不會改變。但隨著我們繼續提供給客戶，這項創新肯定已被接受。

Okay. Good to hear. And I know you mentioned targeting completion. I think you said one more acquisition this year, at least. And then just wondering if you would be more inclined to lean into a deal on that maybe Alfa had in its pipeline or if there are other deals that you have in your own pipeline, maybe in other verticals. Just I guess any other thoughts around kind of maybe what you might lean into targeting this year?

好的。很高興聽到。我知道你提到了目標完成度。我想你至少說過今年又進行了一次收購。然後只是想知道您是否更傾向於傾向於阿爾法可能正在進行的交易，或者您自己的管道中是否有其他交易，也許是在其他垂直領域。只是我想您今年可能會傾向於目標，還有其他想法嗎？

Yes. So Jeff, I would say overall, everything's on the table. When you look at the funnel, we have a good mix within the categories that you mentioned. We're especially keen on the alpha acquisition. And we've talked a lot about the solid macros within the three different categories at that point. Just walk through on next week is the largest show within the on the alpha market segment, the waste management symposium in Phoenix and and I'll be there at that show and we'll be walking the show and spending time within their acquisition funnel that they basically walked us through through the diligence process. So we're pretty excited about potential opportunities there, but we also have other opportunities within the funnel that we'll just see and capitalize on those when we get the chance.

是的。所以傑夫，我想說，總的來說，一切都在桌面上。當您查看漏斗時，我們在您提到的類別中進行了很好的組合。我們特別熱衷於阿爾法收購。那時我們已經討論了很多關於三個不同類別中的實體宏。下週我們將參觀阿爾法市場領域最大的展會，即鳳凰城的廢物管理研討會，我將參加該展會，我們將參觀展會並在他們的收購渠道中花費時間他們基本上引導我們完成了盡職調查過程。因此，我們對那裡的潛在機會感到非常興奮，但我們在管道中也有其他機會，當我們有機會時，我們會看到並利用這些機會。

Okay. Thanks for taking my questions. I'll take the rest offline.

好的。感謝您回答我的問題。我會把剩下的部分離線。

Thanks, Jeff.

謝謝，傑夫。

Your next question comes from Jordan Lyonnais with Bank of America. Please go ahead.

你的下一個問題來自美國銀行的喬丹·里昂。請繼續。

Hey, good afternoon and thank you for taking the question. On the [police] budget growth, I guess the trend is real when we think about the headlines on retirements from officers how does that change, how you guys are bundling products looking for that show going forward if there's just less officers per host or if it's looking at bundling so that way there is more products going through their own refresh cycle.

嘿，下午好，謝謝你提出問題。關於[警察]預算增長，我想當我們考慮警察退休的頭條新聞時，這種趨勢是真實的，如果每個主持人的警察人數減少，或者如果每個主持人的警察人數減少，那麼這種情況會如何變化，你們如何捆綁產品以尋找未來的節目它正在考慮捆綁銷售，這樣就有更多的產品可以經歷自己的更新周期。

Yes, so good. I appreciate the question. So from a bundling perspective, with in market segment, especially within law enforcement, where we have, as you know, quite a bit of share. You don't necessarily see a bundling of products.

是的，太好了。我很欣賞這個問題。因此，從捆綁的角度來看，在細分市場，特別是在執法領域，如您所知，我們擁有相當多的份額。您不一定會看到捆綁的產品。

Okay? So there's even though you have law enforcement agency A., the decision makers and influencers within that agency can be different depending on the product categories. So typically you'll have some you'll have body armor contracts that come up. You'll have holster contracts that come up and there's different decision-makers, which within within each of those categories. So you know, even though headcount has been down through COVID and defund the police, you've seen headcount stabilize as they continue to recruit and add folks within the organization. So as we've said before, we consider the increase of headcount as a long-term headwind or tailwind for us as we go forward pushing us along. So is that headcount continues to be field. There's opportunities for new equipment for those folks.

好的？因此，即使有執法機構 A，該機構內的決策者和影響者也可能因產品類別而異。因此，通常您會收到一些防彈衣合約。您將收到皮套合同，並且有不同的決策者，這些決策者屬於每個類別。所以你知道，儘管由於新冠疫情導致警察人數減少並取消了對警察的資助，但隨著他們繼續在組織內招募和增加人員，你會看到人數穩定下來。因此，正如我們之前所說，我們認為員工數量的增加對我們來說是長期的逆風或順風，推動我們前進。人員數量仍然是現場的。這些人有機會獲得新設備。

Got it. Okay. And then just a follow-up to the acquisition. Without the safety being the I just had such a drastic change in industry to go into. I can appreciate that it hits all of the strategy, components of it. Should we expect another branch off into a totally different industry than please gear nuclear's supply going forward?

知道了。好的。然後只是收購的後續行動。沒有安全保障，我就面臨產業的巨大變革。我可以理解它觸及了戰略的所有組成部分。我們是否應該期望另一個分支進入一個完全不同的產業，而不是讓核能供應繼續前進？

Yes. I mean timeframe to be determined, but yes, absolutely. That's that's in the cards when we think about cadre, we think about really a diversified, highly engineered safety company. So we don't think about it as a military and law enforcement only company. That's certainly where our roots on and we're proud and happy to serve those markets. But the core what underlines and what we believe makes cadre special is the way we operate and the way we operate is agnostic when it comes to end markets. And if you think about a good portion of the management staff here didn't grow up in the law enforcement military markets and have joined and been able to be successful. And we had a great marriage of folks that are very familiar with the operating model and then folks that have a really deep expertise in industry, and we feel like it is a great marriage. It really allows us to be successful in the market by kind of pull on the best of both worlds and so we have the nuclear vertical now. But absolutely, we'll continue to look at other verticals now and in the future.

是的。我的意思是時間框架有待確定，但是是的，絕對是如此。當我們想到幹部時，我們想到的就是一家真正多元化、高度工程化的安全公司。因此，我們並不將其視為一家僅限軍事和執法的公司。這當然是我們的根源，我們很自豪也很高興為這些市場提供服務。但我們認為幹部的特殊性的核心是我們的運作方式，而當涉及到終端市場時，我們的運作方式是不可知的。如果你想一想，這裡的管理人員中有很大一部分並不是在執法軍事市場長大的，而是加入並取得了成功。我們與非常熟悉營運模式的人們以及在業界擁有深厚專業知識的人們建立了良好的結合，我們覺得這是一次偉大的結合。它確實使我們能夠透過兩全其美的方式在市場上取得成功，所以我們現在擁有核垂直領域。但絕對的是，我們現在和將來都會繼續關注其他垂直領域。

Great. That's helpful. I appreciate it. Thank you, guys.

偉大的。這很有幫助。我很感激。感謝你們。

Thank you.

謝謝。

Your next question comes from Matt Koranda with ROTH MKM. Please go ahead.

您的下一個問題來自 ROTH MKM 的 Matt Koranda。請繼續。

Thanks for the questions on. Just wanted to explore the 24 outlook a little bit more if I could on just any help in terms of thinking about what iCore and Alpha would contribute to that revenue outlook? And then maybe just how much like-for-like growth if we were to kind of compare them what they did in 23. Are we counting on much growth from those acquisitions on sort of a like-for-like basis? And then just wanted to also make sure I'm clear. I think I know the answer, but some that you mentioned a potential acquisition. I assume that is not embedded in the guidance for the full year maybe.

感謝您提出的問題。只是想更多地探索 24 小時的前景，如果我能在思考 iCore 和 Alpha 將為該收入前景做出什麼貢獻方面獲得任何幫助嗎？如果我們比較他們在 23 年的表現，也許會有多少同比增長。我們是否指望這些收購能夠帶來類似的成長？然後我也想確保我說清楚了。我想我知道答案，但你提到了一些潛在的收購。我認為這可能沒有包含在全年的指導中。

Starting in reverse order yet the guidance is only what we've what we own today. So alpha iCore as well as the core cadre business.

以相反的順序開始，但指導只是我們今天所擁有的。所以阿爾法iCore還有核心幹部業務。

When it comes to guidance, Matt, we're taking a pretty conservative view, right? These both these acquisitions are within the last 60 days [right] closed within the last 60 days as we're really holding them flat to up what we've disclosed previously for both revenue and margin. So we wanted to take a pretty conservative view here. It's early days, right work, Les mentioned, we're just working on really the back office integration as we move through the year and get more comfortable and the teams get more comfortable with us. We'll continue to to reevaluate guidance, but we thought it best to be prudent at this point on the on the guidance, and we'll continue to evaluate.

當談到指導時，馬特，我們採取相當保守的觀點，對嗎？這兩項收購都是在過去 60 天內[右]完成的，因為我們確實將其持平，以高於我們之前披露的收入和利潤率。所以我們想在這裡採取相當保守的觀點。Les 提到，現在還處於早期階段，是正確的工作，我們只是在真正進行後台整合，隨著這一年的推移，我們會變得更加舒適，團隊也會對我們更加滿意。我們將繼續重新評估指導意見，但我們認為此時最好對指導意見保持謹慎，我們將繼續評估。

Okay. Fair enough. And then I guess the if we hold it flat, I guess the implied growth in the core business is still pretty healthy. Just wanted to see if you could touch on sort of core pricing dynamics that you're seeing across duty gear, EOD on body armor. Just any change in sort of the stated growth algorithm and pricing algorithm that you've had historically for 2024?

好的。很公平。然後我想，如果我們保持不變，我想核心業務的隱含成長仍然相當健康。只是想看看您是否可以談談您在執勤裝備、防彈衣上的排爆裝備上看到的核心定價動態。您在 2024 年歷史上所採用的成長演算法和定價演算法是否有任何變化？

I'd say the core what we strive for and that has not changed, which is you're getting getting the price that we believe the products deserve, making sure we're fighting the inflationary pressures that that really has not changed as we look out the productivity component, I've gotten a much more intense focus. I think the team has done a really great job. That's probably one area where as we look into 2024 will be one of the stronger years we've had and the team this is really goes out to the [VP GMs] and all the folks in the plant operations of getting really focused on that daily management, part of who we are and the operating model and continue to get a little bit better each day that that's probably the single biggest improvement. I think we've been most pleased with this year. So it's really kind of diving into that, that side of that world doing really well with a great exit the back half of last year. And momentum is really just continued growth dynamics. It continues to be, I would say the same as what we've communicated, the police protection budget still have that kind of 3%-ish plus or minus growth and pricing?

我想說的是，我們努力追求的核心並沒有改變，那就是你得到我們認為產品應得的價格，確保我們正在對抗通膨壓力，這一點在我們看來確實沒有改變除去生產力部分，我得到了更加強烈的關注。我認為團隊做得非常出色。當我們展望 2024 年時，這可能是我們經歷過的最強勁的年份之一，這個團隊確實需要[副總經理]和工廠運營中的所有人員每天都真正關注這一點管理，我們是誰以及運營模式的一部分，並且每天都在不斷進步，這可能是最大的進步。我想我們對今年最滿意。因此，這確實是一種深入研究，世界的這一面做得非常好，去年下半年取得了巨大的成功。動力其實只是持續的成長動力。我想說的是，與我們所傳達的情況相同，警察保護預算仍然有 3% 左右的正負成長和定價？

Yes, I would say it's kind of the same that we talked about in the back half inflationary pressures are still there, certainly a lot less than post COVID, but more in line with what we saw last year. Certainly nothing below or above that.

是的，我想說，這與我們在下半年談到的通膨壓力仍然存在，當然比新冠疫情后要少很多，但更符合我們去年看到的情況。當然，沒有什麼低於或高於這個值。

Okay, great. And if I could sneak one in just near term. I know you helped out with seasonality, Blayne, but Tom, maybe just any thoughts on the first quarter in terms of top line growth? I noticed in the release you guys mentioned and this happens from time to time, just given the nature of the business, but the EOD business may have had a little bit of spillover or timing some challenges in the fourth quarter. So maybe just how to think about any contribution that that would bring to the first quarter and how we should think about modeling growth at least top line for the first quarter?

好的，太好了。如果我能在短期內偷偷地做一個的話。我知道你在季節性方面提供了幫助，布萊恩，但是湯姆，也許只是對第一季營收成長的任何想法？我注意到你們在新聞稿中提到，考慮到業務的性質，這種情況時有發生，但 EOD 業務可能會在第四季度出現一些溢出效應或出現一些挑戰。那麼，也許如何考慮這將為第一季帶來的任何貢獻，以及我們應該如何考慮至少對第一季的營收進行建模？

Yes, we absolutely had some EOD projects that moved out from Q4 into Q3 that are sort of Q4 into Q1, and that is a and that is included in that comment I have around Q1 of 2024 being your upfront from 2023, Q4 sequentially. That's both on the top line as well as margin rate. So we're seeing that mix normalize, getting back to more a margin similar to we saw prior prior to Q4 last year.

是的，我們絕對有一些EOD 項目從第四季度轉移到第三季度，這些項目有點從第四季度轉移到第一季度，這包含在我在2024 年第一季度左右的評論中，這是您從2023 年第四季開始的預付款。這既包括營收，也包括保證金率。因此，我們看到這種組合正在正常化，利潤率回到了與去年第四季之前類似的水平。

Okay. Very helpful. Very much. And I think you guys have.

好的。很有幫助。非常。我想你們已經做到了。

Thanks.

謝謝。

Yes, absolutely.

是的，一點沒錯。

Thank you.

謝謝。

Your next question comes from Sheila Kahyaoglu with Jefferies. Please go ahead.

您的下一個問題來自 Jefferies 的 Sheila Kahyaoglu。請繼續。

Sheila, we can't hear you if you're on.

希拉，如果你在的話我們聽不到你的聲音。

Good afternoon, everyone, and thanks for the time and congratulations on the momentum you've had so far. And I wanted to see if you guys could walk us through a margin bridge for the year. I'm just looking at the incrementals at the midpoint of the '24 guide, it implies 25% versus the 40% you did in the past year. Maybe if you could just walk us through the moving pieces of margin on mix, price productivity assumptions and obviously Alticor and Alpha filtering into?

大家下午好，感謝您抽出寶貴的時間，並祝賀您迄今為止所取得的進展。我想看看你們能否帶領我們度過今年的利潤橋樑。我只是看 24 世紀指南中點的增量，這意味著 25% 與去年的 40% 相比。也許您可以向我們介紹一下混合利潤的變化、價格生產力假設以及顯然 Alticor 和 Alpha 的過濾情況？

Yes, we can talk through it at a high level? Sure. We don't get too granular on individual drivers. But yes, maybe kind of starting with productivity, offsetting our labor and other variable inflation with some contribution to the bottom to margin. At that point, we priced meeting our expectations in the market, so offsetting material inflation. And then mix is a small contributor, but mix is really more relevant to Q4, then Q4 to Q1 sequentially, more so than for the full year to the full year, when we think about the drivers of the higher margin product lines due to year and met ends there. They're both slightly up, but it's not significant enough to drive significant margin improvement mix.

是的，我們可以在高層討論一下嗎？當然。我們不會對個別驅動程式進行過於細緻的分析。但是，是的，也許可以從生產力開始，抵消我們的勞動力和其他可變通膨，並對利潤率底部做出一些貢獻。那時，我們的定價符合市場預期，抵銷了物質通膨。然後，混合是一個很小的貢獻者，但混合確實與第四季度更相關，然後是第四季度到第一季度，比全年到全年更相關，當我們考慮由於年份導致的較高利潤率產品線的驅動因素時並在那裡結束了。它們均略有上升，但不足以推動利潤率顯著改善。

One of the elements here that we haven't spent a ton of time talking about is when you think about our two segments, product and distribution distribution margins are there in the low [20%s] was product is in the low [40%s] and these two businesses we bought have similar margins profiles to the rest of that product segment, in fact, slightly higher. So that's driving some of that margin expansion. But then you have a portfolio mix impact. As you think about distribution getting smaller now just a few years ago, distribution was about 25% of our revenue in a given year. Now it's getting closer to 20%. And as that happens over time, will naturally pick up some favorable mix as we get down to EBITDA.

我們沒有花大量時間討論的要素之一是，當您考慮我們的兩個細分市場時，產品和分銷利潤率處於低水平 [20%s]，而產品處於低水平 [40%] s]，我們購買的這兩個業務與該產品領域的其他業務具有相似的利潤率，事實上，略高一些。這在一定程度上推動了利潤率的擴張。但隨後你就會對投資組合產生影響。就在幾年前，您會想到現在分銷規模正在縮小，當年分銷約占我們收入的 25%。現在已經接近20%了。隨著時間的推移，當我們開始討論 EBITDA 時，自然會出現一些有利的組合。

Thanks. And then.

謝謝。進而。

That, no significant FX,

那，沒有重要的外匯，

No. Sorry.

不。對不起。

Just to add on that, no significant FX pressure one way or the other that we're considering.

補充一點，我們正在考慮的任何一種方式都沒有重大的外匯壓力。

Okay. And I wanted to ask the top line question just on the, you know, nuclear protocol versus a law enforcement. And I think you said nuclear is growing at two times the rate [four to six] versus law-enforcement [two to four] kind of can you just talk about cross-selling priorities, how you think about the growth of those markets on is price different in either of those markets? And maybe if you could just expand on the addressable market growth.

好的。我想問最重要的問題，關於核協議與執法。我想你說過核能的成長速度是執法部門[二到四]的兩倍（四到六），你能談談交叉銷售的優先事項嗎？你如何看待這些市場的成長這兩個市場的價格不同嗎？也許如果你能擴大潛在的市場成長。

So yes, I think the best way to look at the nuclear side of things, Sheila, is within the three categories at Boeing talked about that at this point, really our focus area with the team when you look at the macros behind each of those.

所以，是的，我認為看待事物核方面的最佳方式，希拉，是在波音公司談到的三個類別中，當你查看每個類別背後的宏時，這確實是我們團隊的重點領域。

So on the environmental side of things, as Mike said, in the prepared comments about 50% of the overall revenue there, which is a big part of the driving force behind the business. So that's one focus area for the team overall.

因此，在環境方面，正如麥克在準備好的評論中所說，約佔總收入的 50%，這是業務背後驅動力的重要組成部分。因此，這是整個團隊的重點領域之一。

The second focus area is around DOE and Department of Defense side of things. So any of the National Nuclear Security type increases in budgets that we've seen over there as an increase those are really two important drivers to the up to the macros in the business that we see.

第二個重點領域是能源部和國防部方面的事。因此，我們在那裡看到的任何國家核安全類型的預算成長都是我們看到的業務宏觀成長的兩個重要驅動因素。

Okay, great. Thank you.

好的，太好了。謝謝。

Your next question comes from Mark Smith with Lake Street Capital Markets.

您的下一個問題來自 Lake Street Capital Markets 的 Mark Smith。

I know you've hit on some of these a little bit, but just wanted to hit was the business is more diverse now with multiple international domestic and local agencies. You've talked a bit about police budgets, anything else as we think about this new vertical of nuclear as we think about budgets there as well as international and domestic kind of military budgets, any changes that you're seeing are things that we should be looking for?

我知道您已經注意到其中的一些內容，但只是想知道現在的業務更加多樣化，擁有多個國際國內和本地代理商。你已經談到了一些關於警察預算的問題，當我們考慮這個新的核垂直領域時，當我們考慮那裡的預算以及國際和國內類型的軍事預算時，你所看到的任何變化都是我們應該做的事情正在尋找？

No, it's not that we've seen I mean the mark, the macros have been the same. And I know we keep repeating that over and over and over, we haven't seen any large shifts or changes from a macros perspective, both in law enforcement and then also any conflicts that are going on outside the U.S. internationally. And so we continue to keep our ear to the ground. As you know, we have our company-owned distribution that Blaine just talked about where we have a lot of sales folks there that are working with them in agencies on a daily basis. And then we have our Safari land selling team that not only manages our third party distribution in that channel, but they're folks that are with in user agencies also on a daily basis. And we keep our ear to the ground. We're not seeing any major major changes there, which is good. And but what we do see is just the continued spend per officer continues to be very solid across the board. And then our new products that we've talked about quite a bit on whether it's hyper X in the tactical side of things, our new consumer holster line, our new Vault series and then now the new APEX product, um, that's where you continue to either maintain or drive that share growth in some of these pockets of areas where our share is lower.

不，這不是我們所看到的，我的意思是標記，巨集是相同的。我知道我們一遍又一遍地重複這一點，從宏觀角度來看，我們沒有看到任何重大轉變或變化，無論是在執法方面，還是在美國以外的國際上發生的任何衝突。因此，我們將繼續密切關注實際情況。如您所知，我們有我們公司擁有的分銷，布萊恩剛剛談到，我們有很多銷售人員每天在代理商中與他們合作。然後我們有我們的 Safari 土地銷售團隊，他們不僅管理我們在該管道中的第三方分銷，而且他們也是每天與用戶機構合作的人員。我們密切注意實際情況。我們沒有看到任何重大變化，這很好。但我們確實看到的是，每位官員的持續支出仍然非常穩定。然後是我們的新產品，我們已經討論了很多關於戰術方面是否是hyper X 的問題，我們的新消費者皮套系列，我們的新Vault 系列，然後是現在的新APEX 產品，嗯，這就是你繼續的地方在我們的份額較低的一些領域中維持或推動份額成長。

Okay. And then we ask about it every once in a while here, just if there's any update on glass sensors. And similarly, are there any other new contracts that you see coming up domestically or internationally for any of your businesses that maybe present future growth opportunities?

好的。然後我們每隔一段時間就會詢問一下，看看玻璃感測器是否有任何更新。同樣，您認為您的企業在國內或國際上是否還有其他可能帶來未來成長機會的新合約？

So on the blood center side of things, we're still sitting where we were at the last on your earnings call, which is we talked about originally there's four phases of the silicon program with glass sensors. We are in the fourth phase and we've delivered on the fourth phase. And what we've been told is we will get feedback on sometime here in the fourth quarter or the first quarter on that program overall.

因此，在血液中心方面，我們仍然坐在上次財報電話會議上的位置，我們最初討論的是帶有玻璃感測器的矽項目的四個階段。我們正處於第四階段，並且我們已經交付了第四階段。我們被告知，我們將在第四季度或第一季的某個時候收到有關該計劃的整體回饋。

Now keep in mind this program has gotten kind of pushed and pulled as we went along. So as long as the schedule remains that on their side of things and we get that feedback then we'll figure out what the next steps are. They'll actually tell us what the next steps are.

現在請記住，隨著我們的進展，這個程序已經被推拉了。因此，只要時間表保持在他們這邊，並且我們得到回饋，那麼我們就會弄清楚下一步是什麼。他們實際上會告訴我們下一步是什麼。

And then in terms of any new contracts or any additional contracts, some those are always coming in coming out on when you look at us globally and there's various opportunities there that we're all we always have in our sales funnel and always have a mix of what we call larger orders. And nothing is has declined from a large order perspective in that mix. And then we continue to see a good heavy recurring mix of our smaller return recurring-type business.

然後，就任何新合約或任何附加合約而言，當您在全球範圍內觀察我們時，有些合約總是會出現，那裡有各種機會，我們在銷售漏斗中始終擁有這些機會，並且總是有混合的機會我們稱之為大訂單。從大訂單的角度來看，這種組合沒有任何下降。然後我們繼續看到我們較小的回報經常性業務的良好的重經常性組合。

Maybe one way to think about it too, is domestically with the high market shares really very few if no single projects or large contracts and really drive the business one way or the other. You're one of the things maybe to kind of share that was I think we were pleased with and excited as your brand. I just recently got back from a couple of site visits in Europe, in particular focused radar and spent some time with the team there. And then also in the UK and spent some time with with them. And one of the things that became apparent is those teams for us was really excited to see the Lithuanian team, the UK team and the Italian team working together. And this is one of the synergies we've kind of mentioned before, really around having a presence in Italy that having these three teams together and having that expertise in the Italian market has started to open up some opportunities when it comes to body armor and Italy, which has not been a place we've historically competed. So these are going to be [one], they are going to be 2% growth for the overall company, but they are meaningful ways for us to grow our share in Europe with that collaboration and having that additional footprint in there has been fantastic, and it was just great.

也許也可以用一種方式來思考，在國內，即使沒有單一項目或大型合同，擁有高市場份額的人也很少，並且真正以某種方式推動業務發展。您可能是其中之一，我認為我們對您的品牌感到滿意和興奮。我最近剛從歐洲進行了幾次實地考察（特別是聚焦雷達）回來，並與那裡的團隊一起度過了一些時間。然後也在英國和他們一起度過了一段時間。顯而易見的事情之一是，我們的團隊非常高興看到立陶宛團隊、英國團隊和義大利團隊合作。這是我們之前提到的協同效應之一，實際上是圍繞在義大利的存在，將這三個團隊聚集在一起，並在義大利市場上擁有專業知識，已經開始在防彈衣和義大利，這不是我們歷史上比賽過的地方。因此，這些將是[一]，它們將為整個公司帶來2% 的成長，但它們是我們透過這種合作來增加我們在歐洲的份額的有意義的方式，並且在那裡擁有額外的足跡真是太棒了，真是太棒了。

I think Brad and I both left really energized to see how well the teams are really collaborating and working together to find solutions and penetrate some of these these home markets. So hopefully, Alex.

我認為布拉德和我在離開時都非常興奮地看到這些團隊如何真正合作並共同努力尋找解決方案並滲透其中一些國內市場。所以希望，亞歷克斯。

So yes, it does. Thank you.

所以是的，確實如此。謝謝。

Yes.

是的。

Your next question comes from Bert Sublin with Stifel.

您的下一個問題來自 Bert Sublin 和 Stifel。

for a Brexit question. Blayne, just to start with the clarification. You said margins go up from 4Q to 1Q and then sorry, I missed the last part of that, that a sequentially rise or they get back down and then go back up later there.

對於英國脫歐問題。布萊恩，首先要澄清一下。你說利潤率從第四季度上升到第一季度，然後抱歉，我錯過了最後一部分，即依次上升或回落，然後又回升。

We didn't talk so much about the rest of the year. Just now getting more about. I think we'd expect them to be fairly steady this year. But effort that's one we'll have to continue to monitor. It's very mixed driven as we saw in 2023. But right now it looks fairly flat for the year.

關於這一年剩下的時間，我們沒有談論太多。現在才了解更多。我認為我們預計今年它們會相當穩定。但我們必須繼續監控這項努力。正如我們在 2023 年看到的那樣，這是一個非常混合的驅動因素。但目前來看，今年的情況相當穩定。

Got it. Okay. On that, just to follow up, I know you've got a few questions on this, but like if I do some back-of-the-envelope math, just from what you've [disclosed], you're probably adding $55 million to potentially just under $60 million pro forma sales. And so if we do the math on that [relatively didn't play through]. It implies you're going from a lower single digit organic growth profile to a mid single-digit profile. And it sounds like there's some conservatism in that. Can you just walk through? I mean, does that note incrementally new projects improvement, any of the other certain things that are happening outside of just price? Because it sounds like that's fairly stable and it doesn't sound like volumes are changing dramatically on the fleet side. So I'm just curious if you could sort of walk through the change in profile from 23 to '24?

知道了。好的。就此而言，只是為了跟進，我知道您對此有幾個問題，但是就像我做一些粗略的數學計算一樣，僅根據您[披露的]內容，您可能會添加預計銷售額為5500 萬美元，可能略低於6000 萬美元。所以如果我們計算一下[相對沒玩完]。這意味著您將從較低的個位數有機成長狀況轉變為中等個位數狀況。聽起來這其中有一些保守主義。你能走過去嗎？我的意思是，這是否表明新項目的逐步改進，以及除了價格之外正在發生的其他某些事情？因為聽起來相當穩定，而且艦隊方面的數量並沒有發生巨大變化。所以我很好奇你是否可以大致了解一下從 23 到 24 的個人資料變化？

Yes, that's the biggest single one that sticks out or in any mentioned beginning, it is really EOD in particular yet that is the one not core cadre business it has that can be cyclical in nature, but cyclical really just just because of the size of the orders. So we do expect them to be significantly up material for them up over the year. Another place we're really looking at growth is the duty gear business. So when we look at that, that's above expectations when we think about kind of that core, you said 2% to 3% growth there. Both those businesses are quite a bit above that overall average. And that's really what's changing that, that implies kind of mid-single digit growth versus low singles.

是的，這是突出的最大單一業務，或者在任何提到的開始中，它確實是特別是EOD，但它不是核心幹部業務，本質上可以是周期性的，但周期性實際上只是因為規模的大小訂單。因此，我們確實預計他們將在這一年中大幅增加材料。我們真正專注於成長的另一個領域是執勤裝備業務。因此，當我們考慮這一點時，當我們考慮核心時，您說那裡有 2% 到 3% 的增長，這超出了預期。這兩項業務都遠高於整體平均水準。這確實是改變這種情況的原因，這意味著中個位數成長與低個位數成長相比。

Okay. And just on that on the Beauty Care side, then, is that something temporary you're seeing like it fortunately an amount of refresh? Or is that a combination of what you've talked about on share gain, which I think was a little more body armor, but I don't know if there's an opportunity there, too?

好的。那麼，在美容護理方面，您所看到的東西是不是暫時的，例如幸運的是，大量的刷新？或者這是你所談論的份額增益的組合，我認為這是更多的防彈衣，但我不知道那裡是否也有機會？

Yes, this is really driven by some large international projects. The team has done a great job on winning and are having line of sight to.

是的，這確實是由一些大型國際項目推動的。球隊在獲勝方面做得很好，並且有信心取得勝利。

And then also the commercial growth surprise talked about it, but that their new product innovation in 2023 was really outstanding. And Brad mentioned that 24% growth for Beauty Care in the consumer channel in Q4, which is just fantastic in a market that the team's really been focused. So between those two, that's really driving that duty here growth, you'll get market share gains and the fitting by U.S. patrol on those are really tough to come by with our with our high share. But on the commercial side, international, we have real opportunities.

然後商業成長驚喜也談到了，但是他們2023年的新產品創新確實很出色。Brad 提到，美容護理在第四季的消費管道成長了 24%，這對於團隊真正關注的市場來說真是太棒了。因此，在這兩者之間，這確實推動了這裡的成長，您將獲得市場份額的成長，而美國巡邏隊在這些方面的配合對於我們的高份額來說確實很難實現。但在國際商業方面，我們擁有真正的機會。

Got it. Brad, I'll end with one for you. I think we talked previously about Mexico and seeing more near-shoring, and that was driving some inflation they're in and they got the plant in Tijuana doesn't sound like that's impacted margins. Just curious an update there, if you're able to when you relocate some production, are you just offsetting that with price?

知道了。布拉德，我會為你獻上一份。我想我們之前談到了墨西哥，看到了更多的近岸生產，這推動了他們所處的通貨膨脹，他們在蒂華納建廠聽起來並沒有影響利潤率。只是好奇那裡的更新，如果你能夠在重新安置一些生產時，你只是用價格來抵消它嗎？

Yes. No, I appreciate the question. So I had mentioned before, in some of the previous earnings calls, we were working on various some inflation mitigation type type activities, and those aren't necessarily in the pricing realm outside the norm. That we've talked about in the past. So we've looked at various opportunities too, kind of diversify some of that product portfolio and some other different facilities to mitigate that risk, which we do in, quite frankly, in our larger parts of the business anyway. So those activities continue as the teams went forward on that project, and we're continuing to do well on it overall, and that's keeping pace to what we expected very thinking about the project.

是的。不，我很欣賞這個問題。因此，我之前曾提到，在先前的一些財報電話會議中，我們正在進行各種緩解通膨類型的活動，而這些活動不一定屬於正常範圍之外的定價領域。我們過去曾討論過。因此，我們也考慮了各種機會，使一些產品組合和其他一些不同的設施多樣化，以減輕這種風險，坦率地說，無論如何，我們在業務的較大部分中都是這樣做的。因此，隨著團隊在該專案上的進展，這些活動仍在繼續，並且我們在整體上繼續做得很好，這與我們對該專案的預期非常一致。

Yes. Thank you, Maria.

是的。謝謝你，瑪麗亞。

Yes.

是的。

Thank you.

謝謝。

There are no further questions at this time. I will now turn the call back to Brad Williams for any closing remarks.

目前沒有其他問題。我現在將把電話轉回給布拉德威廉斯，請他發表結束語。

Thank you, operator. I'd like to thank everyone again for joining us on today's call and for your continued interest in Calgary. Operator.

謝謝你，接線生。我要再次感謝大家參加今天的電話會議，並感謝大家對卡加利的持續關注。操作員。

This concludes today's conference call. Thank you, and have a great day.

今天的電話會議到此結束。謝謝您，祝您有美好的一天。